The ratings reflect Elini’s overall balance sheet strength, which A.M. Best has categorised as very strong, its strong operating performance, limited business profile and appropriate enterprise risk management.

Elini is a monoline insurer in the nuclear energy sector with a track record of good earnings generation, underpinned by a five-year weighted average operating ratio of 29%. Prospective performance is expected to remain strong and similar to historical levels in the absence of large nuclear liability losses.

Balance sheet strength is supported by the strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), taking into account the mutual’s ability to make supplementary capital calls to members. This positive rating factor is somewhat moderated by Elini’s large gross and net line size relative to its capital base. In the unlikely event of a full limit loss, there would be a material depletion of capital. However, the mutual would be able to quickly restore its capital position due to its contractual right to call retrospective premium for 20 times each member's annualised premium contribution.

A.M. Best has assessed Elini’s business profile as limited, principally due to its moderate size. However, its niche profile in the nuclear energy sector continues to develop, supported by a high level of demand for third-party liability cover. Its gross premium base has grown rapidly over the past five years (2012-2016), demonstrated by a compounded average growth rate of 22%.